South African thermal coal prices inched up this week on the back of a favorable uptick in buying interest from Indian end-users owing to the comparable lower price levels for the commonly exported medium calorific value coal grades.
Moreover, the financial 6,000 kcal/kg NAR market gained over $1/mt day on day, attributing further support to the physical energy market.
Furthermore, Indian demand for Indonesian coal has been muted, after the force majeure declarations by major coal miner PT Bayan Resources Tbk as heavy rain disrupted production at some mines in South Kalimantan.
Additionally, market sources have reported emerging concerns of upcoming supply issues due to scheduled maintenance works on the rail lines serving the country’s main coal export terminal. This may potentially lead to some increased trading activity in the form of speculative purchases.
Meanwhile, strong domestic demand from state-owned electricity utility Eskom has also tightened supply, providing much needed support to prices for coal exports out of South Africa.
The average discount levels for South African 5,500 and 4,800 kcal/kg NAR coals have remained unchanged from the prevalent rates of last week at around USD 7 and 11/MT respectively.
PRICE ASSESSMENTS
RB1 (6,000 kcal/kg NAR) coal is assessed at around USD 62.00/MT FOB Richards Bay.
RB2 (5,500 kcal/kg NAR) coal is assessed at around USD 51.33/MT FOB Richards Bay.
RB3 (4,800 kcal/kg NAR) coal is assessed at around USD 41.60/MT FOB Richards Bay.
For Indian buyers, the above offers amount to USD 75.00, 64.33 and 54.60/MT respectively, after charging an average freight rate of USD 13/MT for Panamax vessel class.
Leave a Reply